NAVI - Earnings call transcript Q1 2021

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Operator

Good day and thank you for standing by. Welcome to the Navient First Quarter 2021 Earnings Call. [Operator Instructions] Please be advised today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to the speaker today, Nathan Rutledge. Please go ahead.

Nathan Rutledge

Marie. Thanks, welcome quarter and earnings Navient's to morning XXXX first call. Good our today Joe are me CEO; Jack With Remondi, and CFO. Fisher, our After open will remarks, call prepared questions. up for their the we

to discussions may begin, and this results here. will and in materially presentation. information variety business different associated disclosed current Actual those including could on other our of and a in is be the about we the expectations due Before among mind, as other here -- contain expectations, of forward-looking keep predictions, statements based factors, management's impact. future that pandemic This with be discussed related the the duration from our date things, COVID-XX economic the uncertainties severity, of magnitude of

the systems, restrictions put travel financial and previously, controls reported the SEC. of close that negatively our those and Company’s reporting policies -- factors place on reporting in disclosure refer books and XX-K ability work-from-home financial internal filings discussion been our our affected other with procedures. the to not Form Please have controls to over SEC or the maintain have and As

ratio, call, financial earnings, to including refer we adjusted conference other measures various non-GAAP measures tangible financial the During derived will from earnings. equity and non-GAAP core core

and Jack. the on you. the call in first posted over quarter the at results financial measures earnings to found be This now and page our is And GAAP description Our non-GAAP turn navient.com. reconciliation XXXX of can -- to with I'll GAAP a Investor disclosure. Thank supplemental

Jack Remondi

you joining for for thank thank Good your and you, morning Navient. Nathan. Thank and today, you everyone interest in us

this results exceptional. quarter Our were

our continued changing quarter. for a were changing of the high needs customers and the to economic the and In clients. of adapt results to fact, a They ability are environment they record our

it never the Our operational Navient, strength pandemic. a apparent has has long-term been during of more been but source for agility than

to respond portfolio; and clients provide were relief adapt assist our people securing and address borrowers and The growing this benefits a in low sales flow clients met need, systems increase gains margins and in rates to ability core loan rapidly transactions; quarter others $XXX we and to as in we assets. environment with execute low and of of continue reserve appetite related respond, quality benefits we XXX% FFELP of loan cash captured several over with and combined and and release the as their million. earnings both to delivered income million loans, result opportunistically net BPS and historically and interest student strong able net quarter. an that we share, this changing needs. accelerated strong interest to for delinquency adjusted earnings we include increase to our of of changing per total, As cost lower our on earned the year-ago $X.XX costs lower In investor revenue rate portfolio And core loan $XXX.X needs; private two funding

investors portfolios private portfolios, longer duration loan of billion our the $X sold brings of income loan the valuation expectations a increase strong loans, lower loans. for legacy sales to the of credit fixed servicing and by Both performance gains cash refi portfolio. and produced value flows in on benefits securitized driven we to education rates quarter, private performance. future these residual million Demand generated strong $XXX the refi legacy given and credit This lead portfolios. and and flows expected loan highlight cash the by their steady our investments from Both discount

owned thousands to loans. loans the refinanced see help we originate demand the graduates portion government refi low and value expand people business. loans demonstrates interest is to and And demand noticeable cause create loan loans. today's in-school attractive made we also to student further we opportunity expense, it refinancing sell One of interest save thousands in loans strong loans. we our to rates, lending broad originator, the a intend share make an see don't clearly higher interest we sell. this their looking I'm change optimistic by Even being our While in when based to time We investor opportunity be a or for from expense new private in and federal with the forgiveness, solid of refinanced. private continued our lock ability grow interest on the holiday saw current to

platforms, the delivered, traditional more solutions. the typical year to vaccinations. financing respond and segment, claims, to and state originations our technology in demand able BPS education Combined, our transparent pleased for we be we we're are return support XXXX. accelerate As our contact In expect reconfirming so $X.X more recently assistance, client's in responsible needed experience much with could more a school projections teammates to to processing and leveraged our resources quickly are least to provide upcoming adaptable billion tracing in at loan needs. in We new vaccines widely unemployment to for help providing size our more

need to for were will services as subsides. this the hope we While to critical happy assistance, these we pandemic continue provide do decrease the

and hire and just bring we within great a a to contractors a to often of ability respond the systems active has and new our assistance to value operations days thousands client. remote with demonstration few adapt been of employees Our

In the longer are project face lending loss many significant of our the experience, wind in reserves term and value we we work and rising loan deliver year-ago, rapidly our uncertainty business on capabilities leveraging economic to COVID lenders As consumer increased other innovation like flexibility to proven down, unemployment. our a solutions. begins focused and to

their its the manage loans. able footing, regained including As were student economy many to their loans consumers

work date the outperformed economic be the still original Though challenge the by as clearly likely strong fact, remotely. to have the expectations, demonstrated maintained of reserves. performance more pandemic, college uncertain, with value able education to of outlook In this the was our further of a is we created credit our segment population to level is

results contributed Our ongoing quarter. efforts to this positive improve our to profitability

space increase on operating efforts While unsecured to initiatives debt, reviewing and means of enhanced and financings includes automation expense. objectives. include Operating our focus corporate efficiency. also expense. we've notes. the ongoing on new the balances quarter lower recently several this expensive continued customer one both expense exited lease strong a reducing traditionally We're experience And operating expensive web a our this improved have offices. interest tools that on needs that Navient, more our our cost and a also this achieved We At completed reduce focus our of most

both year. continue. will decline to of financial capital implementation and over exceeded tangible happy improve our to operating and quarters impacted earlier March target efforts at this in CECL rates efficiency funding targeted ratios I'm Our report XX. interest ratio our The subsequent we performance, adjusted expected strong our that the of reversal several marks, derivative and equity some the with of the

with $XXX XXXX acceleration of million the loan our As the by also and the earnings from sales, repurchases accelerate planned by will a to capital $XXX release full million year. return share for in we of increasing capital result our of

optimistic remain outlook of our for Finally, about XXXX. rest I the

strong. remains performance Our portfolio

Our ahead is loan plan. our earnings and well forecasts of intact. outlook origination are fee And revenue

we year-over-year a our are well on fact, path deliver to fourth In growth. year of

Joe, want to over to call the my colleagues. turn I thank I Before

product serve are quarter's customers for turn commitment And the quarter results you. clients. detail Thank of and over our I'll the this their listening. Joe for Thank Our efforts results. now more call to and you this to on

Joe Fisher

for today's and interest Thank call to your you thank on Navient. you, everyone Jack, in

be During the remarks, investor first which referencing will will quarter can earnings the I website call presentation, my be on prepared company's found in for the I XXXX. the review section. results

Slide is for our original Our on first compared X. quarter provided results to outlook XXXX

the to start on to year. original at exceed are we the a provided all off beginning are of great We as targets XXXX to our pace currently of

Team This the reflect to meet dedication our customers. quarter's the results from needs of continued and challenges Navient

$X.XX As of per increasing strong first $X.XX. guidance range a and original updated a XXXX range of of the XX% our to quarter core result over adjusted we outlook, by earnings to share the are

dividends. of and of quarter, strengthened $X.X capital million provision shareholders private total BPS FFELP release billion sold in loans, education billion costs, utilizing Lower GAAP in million. in and Key position remaining of repurchase that environment, on of form on our education private loans, delinquencies beginning of Slide and education includes repurchases share XX% resulted quarter authority of to favorable regulatory from year highlights million. excludes core interest $X and $XXX $X.XX. of a outlook XX% EPS a reflects planned the include returned $XXX X achieved and Our full the the margin repurchases private share the EBITDA restructuring gains both $X.X by and XXXX EPS increase in of and Originated rate $XXX sale loans in of on adjusted

federal of repayment. funding The favorable net quarter expenses transition this XX $X.X with in borrowers back declined X. move result interest recovery loans $XXX billion. year and the the as COVID-XX loans the of Let's interest average certain from operating costs. beginning by activities from rates year-ago to volume, by which improvement have income ongoing the decreases the overall a to basis year, points, FFELP education Fee environment Total first increase in on balance to interest operating previous and impact improvements net led million on XX% reporting quarter to income Slide increasing to margin asset X% last of declined compared efficiencies. segment even and in primarily rate to to of was as segment expected operational improved in delinquency The the declined X%. driven

I our percentage in the year-ago to largely basis to the a more largely driven occurred in XX refi turn the decline following the Lending Slide Consumer within consumer was in net let's of The which private X.X% The XX% X charge-off interest line of high from in as million points. net loans. margin XX% fell delinquency loan to the Now, on by provide slide. year-ago, that two expectations our nearly quarter, sales income with of basis $XXX quality by was points our in portfolio rate product XXX from rate color total increase driven declined will increased quarter to the the The lending and segment. was

this credit allowance. a time, out At are the economic forecast we confident reserved that transition relates our well of as of to the our in feel continue not we borrowers forbearance, it high significant adequately we As incorporated seasoned have change to portfolio. and quality given

the trends billion the to provision provision in seeing encouraging, was million remain $X.X primarily quarter. remaining excluding release we're newly loans to of the Although originated education related loan sales, the related the highly $XX of

refi to resulted portfolio the education sale loans, loans. private The hold XXXX. $XX funded loans, of our for of loans were $XXX $X.X unsecured originated and on These Slide primarily and with loan from our non-refi debt, turn portfolio. in totaled of gain billion Let's billion which losses million were and first to loans consisting sales. X, this prior quarter, we originated non-refi non-refi In capital highlights of X% reversal of sold loan of all the [ph] $X million. of we allowance newly $XX on million The

the our from the including for transaction of of repurchases directly a The used transactions newly consisted these of loans, continue be was on will funding sale and reduce cash this targeted class. loans. million, thresholds. from allowance XXXX facilities. originated related capital all existing by to losses refi high sale second in million. that associated the $XX asset capital while billion our of $X loans, million the sale that from The to outperform The unsecured of similar Gain rest cash raised increase quality us the a low $XXX portfolio X% default $XX that planned attractiveness these given this and of expectations. debt loan and of reversal residual the totaled of rates gains transaction on against to hold warehouse combined of capital credit our last XXXX refi with flows and to of future We and in meeting with exceeded acceleration transactions allowed demonstrate resulted total sale share occurred release these The majority loan debt for this gains

sales. updated presented Our loan guidance does any today not future include

reopens, to total to of our the us contributed and technology $XX in that on $XXX during increased decline continue that year-ago to than quarter X due unemployment segment. allowed with million in In begin our quarter This million this in leverage the $XX XX%, increase associated expand to infrastructure. the review providing as we margins to of the company benefits, contact quarter, for is are from the contracts to The tracing and million. million one EBITDA to to Let's Processing largely supporting expenses Business our continue existing these doubling $X administration growth more in segment, believe states operating achieve opportunities in total Slide and The first vaccine expire. the will quarter. expenses we revenue increase economy second the to set revenues

to businesses overall focus operating contribute of to improving across revenue growth our and continue our on expense. proportion efficiencies segments our as We our a larger all

financing Let's turn and is on to our allocation Slide that capital activity XX. highlighted

the quarter, X.X XX%. share remainder repurchases price nearly price, reduce would average share During planned of share of at the by million today's million year count $XXX we shares for our $XX.XX. repurchased an our At of the outstanding

residual $X.X of with the to billion term In execution we ABS X loan the the billion quarter of funded issuance tremendous to addition sales, the sale. related in saw on

FFELP tighter than FFELP and basis was over previous that XXXX. transactions that fourth example, since in our February in points transaction the For XX our priced the priced issuance was quarter, largest

We increased our see continue FFELP transactions. demand to for private and both

was debt Navient's debt to rates to with debt. unsecured in ended our better equity lower the and issuance in our XX% marked the maturity retired rest On an and declined Our loan have negative updated our related of quarter losses passage in we April demonstrate $XXX which our of to cumulative These unsecured accounting natural projected $XXX funds cash mark-to-market increase by ability the debt education our to year. in million while million with of ratio projections X.X%, derivative to The of maturities to portfolio. flow line managing tangible cost the quarter adjusted of align printed no million total quarter time. forecast. lowest ever the remaining the the We our of $XXX the unsecured due of profile coupon for for X, transactions of

tangible zero Excluding is these contracts as temporary adjusted equity our X.X%. mark-to-market losses, mature, which will reverse to ratio

$X Let's I growth GAAP income turn We XXXX. in of segments highlighted our outperformance recorded and capital call us loss or $XXX quarter net share, of with million, our questions. will now In across to our increase of shareholders. the results $X.XX summary, for the per targets, compared all per by the Slide or on to share GAAP original first open exceed financing position strengthen XX. businesses well to and quarter million activity net returns first a of $XXX

Operator

[Operator KBW. comes Sakhrani Instructions] Our line first the from question Sanjay of with

Your line is open.

Sanjay Sakhrani

talk loan sort the sales your Thanks. Good factors morning. I I year. could future wanted to what Joe, start you off you're wondering sale. was rest just led to thought not heard of any think I for that decision the say with sale. sales. then assuming the additional Maybe I of the on you on about Thanks. process just And the

Joe Fisher

result presented but only that value done in the we've also loans been I that private also itself just class we here just our to environment we to the there's look think opportunity. both not really the and to this felt as several we've asset actually portfolio. the the asset was side. of portfolio sales. And this was I last appropriate past, originations. a quarters. opportunity our over advantage of for And incredible several Sure, has in the felt mentioned of that of it a demand XXXX refi legacy last a FFELP rate the attractiveness of that months and our an current new demand, this the portfolio, opportunistic, great prior given interest But class, We've and the as value And at took take been demonstrate on loan the sold

loss we forecasting will that of the terms today, that, so we we're provided model, reflects into our year I any and months thing that loan guidance sell guidance, the as account we is in the opportunistic updated earnings. not do our for say of to And of future believe in would as the past. remaining one loans not we updated take that these X as make And with a our sales of guidance be have but strategy

is for lead based it's really great this we and to a off I the think early that first X the year great So to a here. months trends going quarter of saw,

Sanjay Sakhrani

well? I maybe then from could as if any guess, that before you I maybe the couple talk maybe, committee or on Thanks. ago, there's Jack, regulatory And political you're about testified front Absolutely. watching just weeks closely. just you anything the Senate that of thoughts know a

Jack Remondi

developments. the new stable regulatory of relatively environment think on the I Yes, -- terms side think equation, that been no the in the of has -- I

the we've bring number years. that We of continue for now be eager to a items resolution outstanding to to had

we've in As work process consumer I and loan out that past, very that it discovery do facts is said of compliance the laws. we in the circumstances the the clear make full come and the think have there, with programs

just On presents the student equation, the borrowers. the been of about debt there's some talk political tremendous a and it side to discussion amount challenges of and -- there's

asset super their it to high it two, not to a providing And cost delinquency you a year of loans where at indiscriminately, I reasons. in have we've shared a loan we some any private we assistance historic I loan portfolios ideal majority way, hope that mean, We try borrowers proposals about and fall. detail borrowers to we have the is broad that most off value are -- problems of think and depending on struggling. forgiveness, that targeting today fairly and the not seen There some right, for the lows. know education. it who borrowers as received are solution based, significant the that they -- not some where that at of gets many serve in everyone address tomorrow's need concerns in pay are the being or who a near that not as that their is as provide really probably form. address or here. the providing shape here. each size. that is this We're not clearly to is of that benefit proposals those meaning We've relief mentioned the a One it mentioned FFELP exist. reporting testified, it it's the And We've doesn't this couple I that can -- rates testimony, of half it's class been million I an taxpayers, they to certainly policymakers are talked and

Sanjay Sakhrani

Okay, great. Thanks.

Operator

Our the next from JPMorgan. Rick line of question with Shane comes

line Your is open.

Rick Shane

Good morning, bit I'd little Look, like Processing for delve my guys and deeper Business a to thanks on the taking in question. segment.

highlight of guys of in terms the scalability profitability. You the model

interesting I what's to much, were is you operationally. able equally the be increase that so and that practical actually to think scalability actually address able throughput the

these of about talk the You some tolling of contracts. some of

If be on same to sort both what downward pressure, you might curious, the help going pressure. face helpful. really government revenue services revenues would can on us understand I'm the of terms side, happen the RCM RCM particularly the are that of in if and

Jack Remondi

Sure.

the So, I both think and you're of in absolutely we the and the about the that have our right. systems agility I our last mean, year. one people is things of talked adaptability

levels address rising remotely was the of contact number we offer virtually, them to unemployment that needs people other to had connecting been tremendous in of to to clients. a that distribution up too at, timeframe hired are to we're to and the Our able effort them all space. and was country and us adapt processing to these working contractors this efficiency and work-from-home trained performance all hard the etcetera, over than And this involved of leads states are ability And we're higher a them that have all status COVID beneficial were move their been safety. our work outreach now whatever address our sign had to of But processing, to be population folks state team all the of it for vaccine and efficiency certainly vaccinations them rate able we've for targeted in doing state insurance thousands that in The insurance to systems to also to unemployment to reported rapidly operating at One contractors. and encourage health doing vaccination that scale address up segments to could I us allowed a the unique rates. reach we did. tracing, work the the of are XX% to We've needs of on this. to it think, employees quickly particular

we're So to type able in we've excited both and shows care work government to in be services it. And able the super RCM. do health do. been of That to revenue that's up

example. -- then segment. and work RCM is related the services So unemployment the government is contact COVID the the And vaccine in work the tracing for in

it by the is was travelled related. dramatically it hospitals, at hospitals, cycle and related fewer what We we've them the quality as less revenue services declined to us will versus nature in declined we pandemic. a unless is in it of think bunch that management services add, traditional would outpatient able more to second of is last can the many start of be our lot table. to and eventually of did the project in would away. demonstrate We And the quarter. people the inpatient have we revenue capability A that bring that and related expect thing And BPS transactions. And would was about to of permanent as then decline the QX it to about I just significantly to by states Rick, talking opportunities are we work But I go work we impacted work or volume been specialty probably transportation most COVID move that here. the decline would at that done into move rapidly the as that that estimate a work then even third and

are yet, so come but they're pre-pandemic None levels now is back. inching that back them of slowly just way of their XXX% there. to And at starting

COVID processing the of work to we some So we've that comes core here. down, will project rebuild work the done, also see begin as

Rick Shane

answering variable Great, specifically. you -- ask will so one thanks. chain revenue the Thank expenses that the potential operating follow-up, I question will operating you third about us can operating side. of define much understand talked delta expense the on for revenues Help well? And how a that how are much if are the much time? over expense How down as of if

Jack Remondi

So -- most the a temporary this it labor thousands component those have most of work is of -- people heavy that of of a basis. and been hired on

So move to costs we'd be were able revenue move work decline. the that if that -- to

Rick Shane

helpful. Thank Great. much. very Very you

Operator

Our the next of with from line comes Cyganovich question Arren Citi.

is line Your open.

Arren Cyganovich

to Thanks. that? the loans of present of that I'm versus that go loan those you're on Are The the how flows exceeding residual analysis some do with thought gain sales? about looking relative you doing you're those through cash assuming of process whenever that sale? loan at thinking associated value sales, you the sort

Joe Fisher

were here, when Arren, than modeling that say, private question the speaking a other at discount the the certainly rates and the outcome loan more portfolio. applied you whole what you is thanks a rate perspective sales, on from much better that look would I just discount for Yes, analysts are towards

before to being talked attractiveness speaks of have in. just these that about I them but XXXX. the think originated all of before originated environment And I XX% assets were we're that So that the XXXX, --

appropriate the And the in that that was the to marketplace time. price. getting demonstrate at we our felt time it projections, this point in value were just share So very these seasoned to outstanding, this that on we assets look the we believe receiving as based bids the we not have we're own at been versus are well

updated should -- at far that at what if value assumptions, you intrinsic model think analysts higher an lead and today. other your we're I should to look similar So as you with trading than

Arren Cyganovich

Got And on then Thanks. … it.

Jack Remondi

use to gets -- back to think future of the in the that the values those take generated basically buy and those mean, is to to have sell. we to an and acceleration shares today, just add that, reflecting really decision -- that I is which are earnings And to Arren, what ability would them gains not you I

Arren Cyganovich

helpful. $XXX program? think go just Got some you the need achieve to higher share than sort the in repurchase that did an million with through you that's or do -- Thanks, through And that then on Do first can your more repurchase of it. That’s achieve amount you Jack. to regular what share accelerated quarter. that program you

Joe Fisher

We say that I that second repurchase quarter. would to our into through we can the at accelerate of regular these that share achieve levels program. certainly some look

So through normal activity. it I we for but your second that share do modeling would weight the a little in quarter, can repurchase heavier purposes,

Arren Cyganovich

Great. Thank you.

Operator

from comes Credit Moshe question next Our of the line Orenbuch with Suisse.

Your line is open.

Moshe Orenbuch

much those you at Great, -- book I how to much portfolio have price you kind of could And looked how rest how you is gains where kind other when -- where of other think today, following position and in of like the about make is And would a you [indiscernible] of the up existing that types on could questions, effective. assets had trade a that? stock those of do be -- how of couple thanks. in do you mean, the and said many others the

Joe Fisher

different when our of during last the included think touched call so quarter rest the we financing, also portfolio, we've over loan the And I facilities about upon but of so alternative and were this is place years. put in I sales, ways that terms exploring in to that that other

share where can of repo advance, as call in So the the price. sales called in loan as to future done it we there we've are periods facilities from take turbo -- both well flows what the advantage cash advantages today to

I'd advantage today look option not that which things last attractive. -- table, that many say over is years. just few an we on was done And there's of would very So I was we've one to price, this the say item this share that the take the at

less quickly take of that's And we non-refi moved $X than your to table whole on well specifically we types have little advantage as other have to loans. But we the question so options unencumbered, assets. as of similar And a that. of those residuals our our portfolio billion on within

Moshe Orenbuch

and we're that on Thanks. Jack, Could company, about you to - not of whether about -- the kind more it you make Perfect. was refi residual if is said be economics -- made about it the we're you that that becoming better a something unique as what loans. there think particular And, saleable? -- sale talk today? there Or go to model would

Jack Remondi

credit this that low was franchise origination are a Yes, that ability flows, think the I portfolio marketplace. level, for owning got still such refi we've them to future that deal. we an just were on interest Joe not discounting being able current to position, to component, -- X% space available. to rates investor us equation so that than marketplace really performance with the given more obtain is continue -- mentioned, today's attractive the in as legacy basis loans, in and are for our and up that cash exceptionally the that -- as finance the the the our better in we the these this off based of the ability an pretty gains in demonstrate here the utilizing types with -- it's are a of think, the capital believe of an community I of Moshe, value investor -- But we securitization to And rates side in strong end the

and we little I on had think capital different class. a a different this bank structure bit be it were asset if required would

Moshe Orenbuch

very you Thank much. Great.

Operator

line next [indiscernible]. Instructions] comes of the Our from question [Operator

is open. Your line

Unidentified Analyst

me I'm I'm have projected morning. Department Thank XXXX. end wrong quarter-over-quarter. could services. recovery the somewhat And for the you of the bit substantially provide at contract, to Hi. call runoff asset of Correct around I little wondering more the the supposed kind kind details a about of if start those if for Education of declined, just just this you revenues guess

Jack Remondi

at that Yes, with so a One game. asset ended two of Department -- contract stage has the with run in associated we that and recovery had revenue has Ed. the basis, the off an this was on contracts

comes and that loans to --that year. their need the has the end portfolio up later somewhere that We across But plans a that department the [indiscernible] be and expect announce an working for towards we the of with the Department contract. all loans of will to at this for expiration date them is be Ed, we're contract have department what also serviced the -- at ongoing sometime service so we where expect an It this year. and

Unidentified Analyst

… Okay. And then

Jack Remondi

contract, just contract runs going about That year That about I'm to in -- I sorry, I $XXX was the million you a it's size. add, think dollar total. asked

Unidentified Analyst

towards 'XX obviously levels, your this I just than And Thank lower were you mean, I performance? lower standing Or quarter what for FY slightly of first maybe kind charge-offs? charge-off, FY total. in you. 'XX you've guide of on kind Okay. we then projected something the still by terms in are should quarter those, guess just outlook of given

Jack Remondi

guidance, out we're updated not originally the in So beginning set of be we're the year. pace providing certainly to but on a what below at targets we trajectory the that

Unidentified Analyst

me. Okay. last question And then, for

regarding product? you Are total for that think refi guided able color the originations a versus the in-school from be of year. segment kind billion, what $X.X You of mix would towards the provide maybe to any I

Jack Remondi

was of I consumer new billion. broken for to demand think of in lenders the here loans. it's that that haven't so And reduced -- think our billion a of we're seen combination reconfirm given think looking important from that commentary, just some out. original I by stand We forecast total. And I at it you've of We still $X.X $X.X other

Unidentified Analyst

Okay. Thank you.

Jack Remondi

welcome. You’re

Joe Fisher

you. Thank

Operator

from of Our line Josse Barclays. next Peter question comes the with

open. is line Your

Peter Josse

mentioned sense just unsecured sales, the you million reduce about use the Joe, morning. that will there's the that loans like versus proceeds on non-refi for you $XXX a might unsecured private the that seems you to us principal debt. good to give you used of how bonds debt cash It of loan Hey, for you've be retire repaying warehouse much Can earmarked reduction. that borrowing from mentioned?

Joe Fisher

Sure.

it sale, a reduction million just whole there on about, facility that's that primarily in that of call maturities So the July. transaction. the we related of the million the was all $XXX warehouse reduced facility in XXXX was south X, for say was to a loan on due that terms related April little I zero the through refi in turbo the to repurchase but transaction would $XXX of of that to

million to the with address So roughly you're left unsecured debt. $XXX

Peter Josse

Okay. That's helpful. you. Thank

Operator

time. There further are at questions no this

back call the turn to will I over Now Nathan.

Nathan Rutledge

to if call. you We'd Marie. This contact Thanks, any like Please have questions. questions joining thank call. everyone today's for me follow-up today's other us concludes or for

Operator

conference today's concludes That for call. participating. you Thank

disconnect. now may You

Navient (NAVI) 28 Apr 212021 Q1 Earnings call transcript